You work for Monster Beverage Corp, an up and coming firm in the beverage industry that went public several years ago and you are trying to determine a market value for the firms shares using comparable techniques. The table below has market information for three similar but mature beverage firms.

Company Name	EV ($ Million)	EV / EBITDA	P/E
Coca-Cola Company	207,000	7.7	12.8
PepsiCo Inc	185,000	9.4	15.6
Dr Pepper Snapple Group	57,000	9.1	15.8

(a) Using the average EV/EBITDA multiple for the comparable firms estimate a price per share for Monster Beverage Corp. Monster Beverage Corp has 120 million common shares outstanding, $39 million in balance sheet cash and outstanding debt with a market value of $980 million. The firms latest EBITDA was $450 million.

Price per share estimate for Monster Beverage Corp is (to 2 decimal places)

(b) As it turns out Monster Beverage Corps shares are trading at $48 in the market and the firm currently has a P/E ratio of about 30. Using your result from (a), do you think the market is overvaluing the shares or could there be a justification for the difference? Explain.

Do you think the market is overvaluing the shares. Enter Yes or No

If your answer is No to the above question, explain your reasoning/justification for the difference. It is recommended that you type your answer using another program (word/notepad etc) then copy paste it into the space to the right.